Investors shy away from curve steepeners

Global investors are looking for cheap ways to exploit the broadly expected widening in credit spreads this year. One way to meet this objective is to use constant maturity credit default swaps (CMCDS), which are designed to express views that the credit curve is likely to steepen in the future.

With CMCDS structures, investors can profit from credit spread movements or mitigate spread widening, depending on their investment rationale. They can also reduce mark-to-market volatility on a singl

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: